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Wed June 19 2019

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Dawnus trade creditors hit for £40m

22 May Welsh contractor Dawnus was in crisis for more than a year before its collapse into administration in March.

Dawnus had 700 employees
Dawnus had 700 employees

When Dawnus collapsed, it owed unsecured trade creditors more than £40m and employees £5m. Administrators for the business say that these debts are unlikely to be repaid.

Dawnus also owes HM Revenue & Customs about £3m.

Dawnus first called in business recovery experts from Grant Thornton in December 2017 to help solve cashflow difficulties. It raised £7m funding from HSBC Bank and the Welsh government, of which it was able to pay back £4m by selling assets.

But 2018 continued to be difficult and in December 2018 Dawnus asked Grant Thornton to find a buyer or a new investor. Grant Thornon approached 52 potential trade buyers and 23 distressed investors. Only two showed any interest; one offer was withdrawn after due diligence and the other did not even get that far before withdrawing.

Alistair Wardell, Matthew Richards and Philip Stephenson of Grant Thornton UK LLP were appointed joint administrators of the UK operations of Dawnus Group on Friday 15th March 2019.

With no rescuer on the horizon, administration was the only option, says a report from Grant Thornton.

At the time, Dawnus Group had approximately 700 employees across six regional offices and 44 construction sites.

MPU

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